US stocks boosted by Facebook, tech shares

NEW YORK: Wall Street stocks jumped Thursday after blowout earnings from Facebook ignited a rally in shares of large technology companies.

Among major indices, the Nasdaq Composite Index was the leader, piling on 1.6 percent to 7,118.68.

The Dow Jones Industrial Average advanced 1.0 percent to 24,322.34, while the broad-based S&P 500 also gained 1.0 percent to 2,666.94.

Stocks have been under pressure much of the week after the yield on the 10-year US Treasury bonds hit 3.0 percent earlier this week, sharpening fears about higher interest rates. Yields pulled back a bit on Thursday.

Investors cheered Facebook after the social media giant reported a 63 percent rise in first-quarter profits to $5 billion, undented by a consumer data scandal, lifting shares by 9.1 percent.

"Facebook's impressive earnings and revenue results have helped to put investors in a good mood," said Gorilla Trades strategist Ken Berman.

Besides Facebook, Amazon, Google parent Alphabet and Microsoft all won about 2.0 percent or more.

Chipotle Mexican Grill, another company that has struggled in recent quarters, surged 24.6 percent after reporting at 28.9 percent rise in first-quarter earnings to $59.5 million. Investors applauded new chief executive Brian Niccol and signs the restaurant chain is moving past a series of food safety problems.

Dow member Visa jumped 4.9 percent after it raised it profit and revenue forecast for 2018 following a stronger-than-expected first quarter.

But American Airlines sank 6.4 percent as it reported a 45.2 percent drop in first-quarter earnings to $186 million and highlighted higher fuel costs as a worry.

Another big US carrier, Southwest Airlines, fell 1.0 percent as it warned of a slowdown in bookings following a problem flight last week that resulted in an emergency landing and fatality.